Let me give you an example to help you understand what MEV is❓Why MEV solutions are important❓

Suppose there is an on-chain user who is using a decentralized exchange (DEX) to trade. He wants to buy a token at a price of 100 ETH

At this time, a miner observes the upcoming transaction. The miner will quickly insert a transaction of his own to buy the same cryptocurrency at a price of 101 ETH. Because the miner can control the execution order of transactions, his transaction will be packaged into the block before your transaction

As a result, he finally bought the token at a price of 101 $ETH , and the miner made a profit of 1 ETH

This is a typical MEV (Miner Extractable Value) attack. This attack not only harms the interests of on-chain users, but also undermines the fairness of the blockchain system. If this happens widely, it will seriously affect the credibility and user experience of a chain

Therefore, it is very important to solve the MEV problem. Through the design of technology, economy and regulation, the corresponding solution can further reduce the possibility of miners obtaining MEV benefits and ensure the fairness and security of blockchain transactions.